7 Steps to Searching for Comps

Today I wanted to talk to you about an important piece of the real estate investing puzzle that a few of our students and subscribers have had questions about – Comparative Market Analysis’. You can use these when finding new deals to see if they are in a good area and will sell quickly and for your asking price AND you can use them to figure out what to list your newly rehabbed property at.

My brother Mark is not a real estate agent and he has been very successful in this industry, so I will be sharing with you how he has made it work for him. If you are like Mark and are not a real estate agent, nor working closely with one, one of the best websites for finding and evaluating profitable deals is Zillow.com. The site is a must-have resource for people who do not have access to the MLS.

For example, let’s say we are in the market for a home with at least one thousand square feet, two bedrooms with square footage that you can turn into three bedrooms.

Here are the simple steps for running a search and conducting a CMA (Comparative Market Analysis):

1. Set up the search on Zillow.com or on the MLS if you are an agent or are working with one.

Choose properties for $80K and under.

Mark the specific zip codes.

Select 900 square-feet and larger.

Select 2+ bedrooms (can be converted into 3).

Select 1+ bath.

Check the boxes for sale by agent, owner, new homes and foreclosures.

2. Do a search on other sites including: Homesteps.com, Homepath.com and HudHomeStore.com.

3. Check out the photos of the homes and find out what has been sold in the area near the home. Check the values and compare the other homes that have been sold to the listings.

4. Research the price history of the listing; get this information at no cost from title companies or closing attorneys, who will work with you to help you close deals.

5. Conduct CMA – if you see X number of solds, pendings and actives, only pay attention to the “solds” because the prices for the “actives” are often unrealistic and misleading.

If there aren’t enough “solds,” that’s when you can check out the “pendings.” Only look at “history sale” or “short sale,” not “pre-foreclosure.”

Check out the listing history; a property can be listed and not sold with different agents multiple times. It is important to consider a property’s DOM (days on market) and compare it with the average in the area. In my area, the average DOM is around four months.

6. Go see the property in person, preferably with a real estate agent.

Check out the house, drive in the neighborhood, and see what else is for sale in the area. Have a smartphone or laptop with you, so you can have quick and easy access to information you need on any given house you see while out and about.

Use your real estate agent as a resource. Realtors are especially excited to work with you if you are a cash buyer, so don’t be afraid to ask questions.

Take a mental inventory of the potential construction or rehab process you think a home might need.

You can save these searches and reopen and run daily to see what is happening in the market. Don’t feel like you aren’t doing real work because you are doing it online. These days, this is the norm and truly the most effective way to search. In fact, 92% of homebuyers, including both investor and retail, start their searches online.

Everyone Needs a Mentor

Many times, when you are just starting out in real estate or taking on a higher volume of houses you are flipping, things like CMA’s can be intimidating. Everyone wishes they had a real estate investing professional to help walk them step-by-step through the process the first few times.

For this very reason, I created my one-on-one coaching program that is tailored to you and your business goals and needs. Whether you are diving in head-first to real estate investing full time and want to flip 50 houses a year, or if you are just doing it part-time on the side to keep busy during your retirement, we can help put together the perfect business model for you.

If you need a mentor to help you connect the dots in your business, keep you on track and help you make more money in 6 months than you would at your current job in 3-5 years, this is the program for you.

Coaching Success

Since January 2016, Teddy Slack has purchased 21 properties

Darren and Kate Mancuso have closed over 40 deals

Michael Johnston has closed over $4 million dollars in real estate within the last three years (and he’s still working a full time job!)

Mike Neill has closed 8 deals in just 14 months

Mike Cantrell has closed 4 deals since January using Freeland Funding, has 2 more on the books and each one has profited over $45,000

Jeff and Julie Kappel average about 50 properties a year using SREC’s systems

Do you want to see your name on the next bullet point? You can! It’s time to invest in yourself and your real estate business to be successful.

7 thoughts on “7 Steps to Searching for Comps”

I signed up to tap into the webinar for “Tap Into The BILLION DOLLAR Unclaimed Money Market… And Earn A Full-Time Living By Sending Out Simple E-mails” for yesterday and today as well for the time slot of 8-10pm EST and for both cases family matters had come up. I was curious if there are any other webinars, anytime soon, that I can attend due to missing the other ones. Please advise asap, I am very interested in this program.

Hi Jason – that promotion has ended for now, but we are currently offering a free class teaching you how To “Buy” Houses Using 100% Invisible Bank Funding. Check it out here: https://invisiblebankfunding.com/register/